Helburn-Thompson Co. v. All Americas Mercantile Corp.

Headnote

Helburn-Thompson Co. v. All Americas Merc. Corpn., 180 App: *Div. 167, affirmed.

Appeal, by permission, from an order of the Appellate Division of the Supreme Court in the first judicial department, entered November 23, 1917, which reversed an order of Special Term directing the receiver of the All Americas Mercantile Corporation to deliver to the National Park Bank certain merchandise, or at his option, to pay to the said bank the amount of two drafts which had been drawn for the price of said merchandise. On December 23, 1916, the National Park.Bank bought from the All Americas Mercantile Corporation two drafts on Eduardo Paats & Van Heuckelum of Buenos Ayres for an aggregate of $2,961.43, payable ninety days after date. Attached to these drafts were bills of lading for three cases of leather. The proceeds of the drafts, amounting to $2,872.60, were credited to the account of the All Americas Mercantile Corporation and after-wards drawn out by it. The drafts were accepted by the drawees and thereupon the bills of lading were delivered to the acceptors, who were also the consignees of the leather. After receiving the leather, the consignees reshipped it to the All Americas Mercantile Corporation on account of a previously existing indebtedness of the consignees to the All Americas Mercantile Corporation. The leather is still in the possession of the receiver. Upon maturity of the drafts they were duly presented to the acceptors for payment,, but were not paid, arid thereupon were duly protested for nonpayment. The Appellate Division held that after the acceptance by the Buenos Ayres firm, the sole object of the pledge was accomplished, and upon the surrender of the bills of lading to this firm the bank lost all interest

in the specific goods pledged, and must be deemed to. have been content to hold instead of a hen on specific goods, merely the personal liability of the acceptors for a liquidated amount as represented by the drafts.